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tv   Trending Business  Bloomberg  October 20, 2015 10:00pm-11:01pm EDT

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ferrari raising money. of us know what you think today's top stories on twitter. her -- public holider holiday here hand -- and hong kong/g. all at the moment in the mix. seeing a goodre gain from japanese equities. you might've just noticed the shanghai composite region from red to green, that has been the same all day. are fluctuating
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today. the shanghai composite holding on right now to that eight-week high. we are seeing money coming through from energy players. taiwan has also come off yesterday's high. up 0.25%.ares are you can see here that the oil and gas stocks are falling. crude fell once again, but some other stocks looking pretty good, some up by 0.8%. we're seeing a big switch out of health care stocks. japan is hurting today.
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generally, we are up, and that is the first win of the week. rishaad: a surprise from japan, unexpected trade numbers. we have that data, offering little encouragement. they do make a bleak assessment of the situation. in china, david has been looking at this evidence. down for china, and some structural issues in japan. it has been a sluggish reading so far. quebec to january, we are about --growth in exports for 2015 going back to january, we are at about 6% growth in exports for 2015. emerging markets find themselves a much the same situation right now.
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we have a surprise deficit for japan, looking at ¥115 billion for september. months where to 42 experts have exceeded imports -- exports have exceeded imports. that is really been there since the closure of these nuclear plants following the 2011 quake. been is one plant that has reopened, but it has had to import a lot of fuel/. adjutants -- fuel. as you can see, energy makes up the biggest part of the pie. lng, in thatoleum, order, that is one side of the
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equation. export growth to china, look at that, 3.5%. u.s., wee not for the could be looking at a much bigger deficit here for the japanese economy. that really speaks to the other momentum which has consistently been buying more from japan over the last 13 months. we're looking at double-digit growth, and china has been buying less. we do have a gbrbreakdown of wht china buys from japan. a similar to germany, and when you're industrial base is and growing as much across the industrial space, then you need less things like electrical machinery, semiconductor equipment, and so on. really a shows you
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better picture of what china is doing, and the u.s. is doing. rishaad: thanks a lot for that, we will look at more of that story later on. you can tweet us your thoughts. had aggest mining company 7% rise in iron ore production. housings have been going deeper during the slump in the resource side of things. miners numbersy game. production just keeps going up. as you mentioned, iron ore once again the star, first-quarter production up 7%, much in line with estimates. it was a similar story across main commodities.
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and electrical was perhaps the most disappointing, copper 400,000 tons, that beat estimates. they are down 3% on the year. a similar story for petroleum as well. they are down 4% on the year. front, capitalm expenditure will be cut to down 200 million to 2.9 billion. but they're welcoming those numbers saying the company is on track to meet full-year production and cost guidance. as 1%, but as high it since gone back down. rishaad: thanks for that. thee watching a story which
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kernel would be watching very closely few were alive today. the biggest shakeup in nearly two decades. spin offthey will their china business from the u.s. operations, bowing down to investor pressure. china by julyn triggered calls for change. take a look at one vocal activist investor, he is known as the protege. he said the asian market could be better served a more focused business. shat the move could boostyum!' 'slue bison -- boost yum! value by $7 billion. half of its revenue comes from china. it struggled to find menus
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catered to local tastes, not to mention increasing competition from local names. let's go to malcolm now, getting 250 gaming tables to their resort city, one week before it is scheduled to open. end ofmber at the upper what analysts were expecting. some say definitely positive news from an investor's point of view. this shows that studio city checked all the right boxes in terms of the non-gaming facilities of the governments wanted. the announcement came days either aftert back criticism of his policies last week. keep in mind, melco did get 100 more tables than the casino that opened in may. a is still less than what wanted. they wanted 400 gaming tables.
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he said he would be very concerned the project did not get that amount. finally, let's take a look at ferrari, they hit the road in the new york stock exchange today raising nearly $900 million in its ipo. under race,isted and it certainly was a race. shares of the top of the range at $52 each. department will make about $4 billion from taking the company public. this gives them an enterprise value of a billion dollars. shares have done very well, more than 60% in the past year, and has been the best performer among major auto industry stock. the greatest of the u.s., where a 7% gain for gm, and a 30% plunge for volkswagen which is grappling with a diesel emissions scandal.
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, growinganother story expectations among economists that the chinese government will add similar means. in, ato come, digging taste of another time in the space of cambodia. there is a food truck revolution we both discuss later on. president says china and the u.k. of becoming increasingly interdependent. more that when "trending business" returns. ♪
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itsaad: china's president increasing import relationships between his country and the united kingdom. he addressed both houses of parliament, he said his visit will address shared interests
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and promote bilateral ties. he singled up britain's position, and it eaten is to join beijing's investment bank. there are examples of increasing interdependence. people of china and the u.k. are creative, and eager to embrace change. i'm competent that together we can create opportunities. china-uk relations can look better -- forward the brighter future. that in set is a clinical significance to the u.k. economy despite the slowdown in china. tokyo, with the asia-pacific chief economist at ihs global insight. what is your take in all this? i think, from the point of view of the u.k. government and the u.k. economy, china is increasingly important.
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we see that in the trade data, 10 years ago british exports to china were about 4 billion pounds. they have reached 18 billion by last year, it is a tremendous growth in exports at a time when many other major regions, such as the euro zone and the u.s., have not been going that rapidly. from a strategic point of view of prime minister cameron, it is very important to enhance this relationship with china. ofhin a broader strategy boosting trade between the u.k. and asia more generally, that is. rishaad: is this all just short-term-ism? i've been looking at some of the comments coming through on social media saying well, the u.k. is foolishly endanger -- in danger while pursuing these interests?
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>> it is interesting that when the prime minister announced in march that the u.k. would be applying to be a member of the asian up and structure bank -- infrastructure bank, they were encouraged to make that move. after that, every european country follow their lead. criticismsere was against the u.k. for being on the front foot in developing his relationship with china, i think behind the scenes and the rest of europe they are pretty envious. strongnt to have a relationship with china, because the bottom line is clear, the chinese economy is already the world's's second-largest economy although it is slowing down, but it is growing up 7% a year. it is a tremendous future growth opportunity, at a time of the euro zone is showing very little growth. we expect retail sales in china to be growing by 80% a year over
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the next five years. in the euro zone, we expect them to grow at about 1% a year. inard jobs and businesses the u.k., china is silly very important market for many years to come. prime minister cameron is absolutely right to put a huge emphasis on building up that relationship. know,d: indeed, but, you there is a lot of investment. one of the things they want to do but solidify london as the chief offshore center for trading the yuan. ultimately, it is the biggest trading hub in world. >> it could be for india, as
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well is in the future. nevertheless, it is important to have the strategic relationships in place. is not yet they fully convertible currency. status,does reach that i think the u.k. should be very much any front foot. london, as a leading financial center, will be very much a part of that story. competitors, hong kong, singapore, new york, london cannot be complacent about that. it needs to continue to engage with china to make sure its position for the changing financial landscape that we are seeing a competition amongst international financial hubs. there was a state visit to the u.s. a week or two ago, how will washington look at this visit? >> i think we have seen some
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concern from washington when the u.k. announced wanted to join the aib, because the u.s. has not yet applied to join that. from the u.s. government interview, they had not considered that a very strategic play your date -- priority. apply to join, subsequently, some of the other countries have joined. that gives a broader perspective. there is a concern that the u.k. as a u.s. partner in the long-term is smoothing somewhat towards china and its positioning. it is also counterbalancing its u.s. relationship with economic opportunities in china. when you look at the long-term global landscape, we expect china to become the world's largest economy somewhere around 2027.
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the u.k. has to be position for that economic relationship with china, even though strategically at both still be closely tied to the u.s. it needs to have multiple strategies in place, because they rise of asia is continuing to play out for decades ahead. it is in the interests of the u.s. economy to be engaged with china, india, indonesia, and all the big emerging asian powers. rishaad: nice talking to you. we have to take a look at some of the other stories making headlines around the world, japan is concern for the first ise that a cleanup worker linked to the 2011 disaster from fukushima. say about 7000 full-time contract workers were there any given day. a study by a university found
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increasing cases of cancer among people in fukushima since the disaster. the philippines says 22 people were killed by the typhoon, and widespread flooding. they say the storm caused more than 5 billion pesos worth of damage. moving awaying and slowly, but storm warnings remain in place for 14 provinces. next, chase the advertising dollar. why yahoo!'s ceo is struggling to convince investors she can turn the company around. ♪
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♪ take a look at yahoo! shares, they fell in the extended session after they missed earning's estimates. the company also up with his largest quarterly sales report since 2009. >> a trio of your earnings -- earnings in yahoo! is front and center. its biggest quarterly sales drop since 2009. give a fourth-quarter forecast that missed, and then raised
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questions about the turnaround effort. is in her fourth year without a big revenue boost. 16 centsversus the that estimates were looking for. for signs that yahoo! is making a turnaround, strategists say this isn't it. that we canbelieve achieve a competitive search dynamic that will provide a better experience for our users and will improve our monetization. su: yahoo! has been struggling to fend off rivals like google and facebook. meanwhile, harley davidson the motorcycle maker had its third-quarter profits miss estimates, it now will cut to jobs after that. is unspecifiede
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at this point. it could cut its to guidance from shipments this year between 265,000 and up. they are trimming that projections all around. the prospects on of lower margins going forward. little changed from this year. that surprised analysts that stick to the revenue rebound after three straight annual declines of the largest defense contractor. the aeronautics division did raise to 11%, but its operating budget fell 11%. keenan,ork, su bloomberg tv. rishaad: we are counting down
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the semifinals of the rugby world cup. some cover houses flying for a chance to play for the trophy. south africa meeting the defending champion on saturday before argentina taking on australia on sunday. they will return to west london a week later. the south americans have eaten them only once in 17 years per averaging 44 points a game this tournament. they will play their first world cup since thousand seven. a survey made it into the final four thanks for controversial. last-minute penalty against the scotland officials have admitted that the referee made the wrong call. he is not involved in either match this weekend. ♪ the only way to get better is to challenge yourself,
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and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around.
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♪ rishaad: now a look at our top stories. japanese stocks higher on speculation a more stimulus after week trade data. -- weak trade data. europe did rise, but it was the slowest expansion the more than a year. mining companies up 7%. they will meet for your production targets as they
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expand western australia. other producers have been raising up in order to boost his savings. the biggest shakeup in nearly two years, the kfc and taco bell will spin off their china business from the u.s. business after calls from investors to make a move. japanese equity traders heading into their lunch break and now after a strong morning session. are having a-- we look at what is moving those markets. juliette: as you mentioned, those weaker export numbers really boosting expectations of more stimulus. that has led to a strong morning session. they lifted the overall region, the shanghai composite has been
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fluctuating in and out of positive territory. we do have hong kong markets closed today for a public holiday. --the shins and composite they have resumed trade after a five-month halt. 3,000,000,001 1.0 yuan, but has fallen by as much as 3%. taiwan also coming off yesterday's highs. new zealand has the longest winning streak since november of last year. the big some of winners of the region. japanese export companies lifting on the weaker yen which makes at sports -- exports a lot
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cheaper. semiconductor and a great again yesterday is lower at the moment. certainly, the japanese trade lifting the region today. the regional benchmark on track for its first gain of the week. rishaad: let's get more on the disappointing trade data out of japan. as good our asian economy editor. walk us through the numbers. first of all, this is the slowest case of exports and more than a year for japan. in china and particular,japan's largest trading partner face i decline in exports. china slowdown has been stopping the growth and we are seeing declines in exports in indonesia
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and india and malaysia. it is really become an asia wide export decline for japan. even though they have some increases, off of the pharmaceuticals and europe, that is not enough to make up for the huge decline by china. all tellwhat does this us about what is going on in china, particular? and of course, it tells us a lot about what is going on in japan, too? >> these of the first signals we are seeing about what china's slowdown could mean for asia. asianrge stocks and other companies, we are seeing that here. that raises the question of stimulus which is why you're theng in your market report markets responding. on october 30, there was a policy meeting very closely watched to see if there will be
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further stimulus. 42 of those surveyed said they expect stimulus. that was before today's report. rishaad: tell us about some of the other numbers of the note in this report and why they are of note. again, the i think, most important is china and the rest of asia. arepe and the u.s. interesting numbers, the u.s. up by 10%. 5%, thoseup more than probably tell us more about the strength of those economies than japan. imports we saw weakness in japan, but that is mainly oil price decline. rishaad: thank you for that.
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we're sifting through those japanese trade figures. let's check out some of the other stories. ofy agreed over the theft their personal information the company will pay current and former staffers as much as $4.5 million. they were hacked last you ahead of the controversial movie "the ."terview ther many salacious hollywood secrets revealed. tilting investing data that it worked in india. the company said it will continue to have independent attorneys to work with them. they're the content data from the past 10 years, similar problems and they cannot be sure there are no flaws in other buildings. >> i want to express my sincerest apologies for the construction flaws. our top priority is to investigate the facts and ensure
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the safety of the residence and and gain -- regain trust in our buildings. , and willponsible take action after the investigation is complete. time,d: tesla had a hard it was down, and dropped the model x below average and reliability. earnings reported an array of details and complicated problems including the sunroof and, indeed, the motor. teslas a problem, but owner satisfaction remains fairly high. sco posted its biggest quarterly loss in more than five years. they lost more than $470 million, they're struggling with globally -- plunging global commodity prices. a lawsuit settlement also her to
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them. the is with a look like at moment, up 5.3%. one company which had a good day in new york was yum! after news of its biggest shakeup. enthusiasm,or the it will spin off the chinese business from its u.s. operations. editorrg news asian view is with me now. suddenly you're restructuring. this is what is going on right now. it seems like a bit of a knee-jerk. ben: i think it is really about a management focus. building to focus on up the business. they're so struggling in china after the supplier scandals, the chicken scare about the supplier. that is really hurt their image in china. they're still really big there.
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they have more than 6900 restaurants. kfc is the leader in the fast food market in china. they are trying to focus on the problem, then grow the business. rishaad: they were the first of the big fast food chains to go into china. they are vastly bigger than the likes of burger king and mcdonald's. they first opened a kfc in 1987 and lines were around the block. they have been there for the past 30 years. they got there three years before mcdonald's, from here they said they want to grow even more. they're talking about 20,000 restaurants than a few years. the new spinoff company will have the rights to kfc, pizza hut, and taco bell. rishaad: they are having problems in china, but i think it is down to the making burgers. look at this one, this is the black diamond taken spicy
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chicken leg burger. rose it cheesee roasted chicken leg burger here. those so for $2.80. that doesn't look particularly appetizing. go.e is that, and there we why do this separation now? you brought up one of the key issues, local tastes. kfc in china is very different. you don't see purple bonds in a new -- buns in a new york outfit. they're been facing increasing pressure from home-grown pressure. they have more of a handle on the local taste, they realize they have to do something if they want to maintain that.
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be right sizing, that is the thing ultimately. thank you very much, indeed. of course, let's get more that story if you download the bloomberg plus app. up next, japan confirms for the leukemia caused by the disaster in fukushima. up next, the enduring human cost. ♪
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rishaad: japan has confirmed for the first time that leukemia found in a worker is linked to the 2011 disaster.
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the man was in his 30's when he was employed at the facility. let's bring in bloomberg news 's stephen. what does this mean? stephen: this opens up the case of liability. although the government, the link that they made will be providing compensation for the employee, this may set a precedent in the sense that now any employee who gets any sort of cancer from radiation from fukushima could potentially sue the company according to analysts that i have spoken with. the amount of radiation this employee received is actually the than the average that most employees received on site. we might see more cases of those that get cancer. they could all ask for payments
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for their work lost or medical bills. the disaster in chernobyl, there were so many cancers creeping up with the local population and people trying to fight the disaster. it is almost certain that we will see more canceling to fukushima -- cancer linked to fukushima? : there is some question just to how you can set up a link, one study showed that those under 18 had increased amount of thyroid cancer. those being adolescents living around the fukushima area. we see the stories popping up as monetary increases, there is also an increase in those that of radiation linked to cancers.
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the doctors i have spoken to the incubation. 0-20 years, we may see these cases go on for decades as the scientific community get used to debate whether there is a direct link to fukushima. rishaad: thank you very much, stephen, joining us from tokyo. let's take a look at some of the stories making headlines around the world. view when inspector general has called for calm during his visit. prime minister benjamin netanyahu will talk to palestinian leaders in the west bank today. eight israelis have been killed by arabs using knives, guns, and cars. other palestinians have died, some including alleged attackers. prospect of russia
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widening the airstrike beyond syria. the marine general was in the rock for the first time -- iraq for the first time. the u.s. and russia now have an agreement aimed at the accidental clashes between their aircraft over syria. cambodia has welcomed the return of two statues said to be -- have been looted during the civil war. some of the 1213 century were handed over by a norwegian collective. he refused to say how he obtained them, they were taken from a province holds the same temples. cambodiao has visited will be familiar with the delicious street food there as well. sharingditional dishes,
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roadside space with more expensive international fare. >> there was nothing unusual about noodles being cooked on the street, what is unusual are the type of noodles, and the price. ebola rahman for more than 5 -- a bowl of ramen for more than five dollars. when customers first come there, they always say delicious. it is something different for them. when they eat it, they say it is tasty. >> it becomes more and more cosmopolitan, and we're seeing more types of food coming into cambodia. you can eat your way around the mexicanre from greek to to american, nowadays we are finding it on the street. >> they're welcoming new foods, but are still struggling with a familiar old problem -- namely, horrible traffic.
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some established restaurants are taking a cue from the traditional food carts and taking the kitchen to the customers. >> there was an old adage that if they can't come to you, you should come to them. there was a growing trend with food and beverages eating mobile and being easily accessible to more of the masses. already has one carts operating. he will likely be joined before long by many others. next,d: all right, up ferrari sending shares of the top and the ipo prices. "trending business" returns after this very short break. ♪
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♪ rishaad: this is "trending business," economists are
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forecasting china will add stimulus this quarter. the latest gdp figures showing signs of stabilization, but they are still shy of the government's 7% target. the nation is more targeted, including tax cuts for vehicle purchases and reduction in the minimum down payment for first-time homebuyers. pledged money for africa, the commitment was made by the prime minister on a tour. south africa says china will provide technical experts to help build industrial parks, and powerplant. makerlves biggest ship will invest in its chinese operation through the end of the decade. intel has had the factory since 2010 and will update to produce memory chips, this comes after for pcent demand
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processes. appear to be looking for a comeback. this after shares plunged and were suspended from trading. the chairman appeared on national television, and said well done, wishing you success. it is not clear from the video what he was praising. in may whenspended the stock lost $90 billion in less than half an hour. sportsld's most famous car maker is hitting the road of the new york stock exchange after raising its ipo. ferrari generated a lot of interest. for the shares, those more demand for this stock then there was a supply. the owner was able to offer the top end of the range of shares
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offered at $52. the initial price was between $48 and $52. and gives ferrari enterprise value of a billion dollars. it will start trading on the new york stock exchange under the ticket code race. raise $4 billion by taking the company public. really needs this money as it attempts to finance a 48 billion investment program focus on expanding its other programs included the maserati name. we are expecting a big fanfare when ferrari lists on the new york stock exchange. ceo, willan, also the ring the bell along with other executives.
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the son of the founder will also be there. it looks like a big rise for ferrari, it has been a lot of demand aware talking about one of the cheapest ways you could honor that -- rishaad: this is a sign that demand for ipo's is back in the u.s.. juliette: you would think so, but there was been less demand for a number of other ipos that a tried to launch in the u.s.. a mobile phone company had to cancel its public sale due to lack of interest. that is a global payment technology company, it was priced well below the target range they wanted. hadfood and drug retailer to postpone its ipo due to not enough demand. is not in the same category as a lot of these others that have had to postpone. rishaad: when you look at it, you mentioned as a ruddy --
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brands,, these iconic maybe we will see more these coming onto the market separately as standalone companies. juliette: exactly, it is a good way for these companies to get into more money. -- we of companies same private shares doing incredibly well in new york trading. monthsp over the past 12 , and if you competitor general motors, it is even better. hasnow how badly volkswagen been doing. certainly, ferrari looking like a good a day going forward. rishaad: thank you very much for that. fans have set sales records after the seventh installment. this is two months before it opens in cinemas and they're already trying to keep up with the demand.
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box predicting eight $215 million opening weekend for the u.s. and canada. asia edge is next. ♪ .
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>> jim webb, a man with a simple dream. all he wanted was to be heard. now he is doing the only thing he can. >> i am withdrawing from consideration for being the democratic nominee for the presidency. >> tonight, we bid farewell to a democrat. godspeed, senator. jim webb. he has been waiting for 10 minutes. ♪


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